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OpenSea, the biggest NFT marketplace in the world, has delisted CryptoPunks V1 over a legal dispute with Larva Labs. The collection is based on the same smart contract as that of Larva’s, and the latter blacklisted the project.
The community is incensed after OpenSea delisted the entire collection following a takedown notice from Larva Labs. Many community members seem to have made up their minds even though it has yet to be confirmed legally whether CryptoPunks V1 is what it sets out to be.
CryptoPunks V1 gains prominence
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While some community members call the validity of CryptoPunks v1 into question since it was released in parallel to the more popular CryptoPunks v2, the former gathered momentum as whales pumped up volume on competing platforms like LooksRare.
The decision backfired, was reversed
The biggest NFT marketplace’s decision seems to have backfired, adding to an unfortunate sequence of events eclipsing it. While CryptoPunks v1 series just debuted on LooksRare and other competing marketplaces, OpenSea had removed it for a long period of time.
Due to those developments, OpenSea lifted the original ban and trading volume of the wrapped CryptoPunks v1 series had passed 315 ether (ETH/USD), equivalent to almost a million dollars.
Issues surrounding the authenticity of this NFT series have emerged. Creator Velinova.eth commented in the official CryptoPunks v1 Discord:
We have been in contact with a top-tier IP Attorney from the US who has advised us that we are lawfully able to carry on in the trade of these CryptoPunks. Given we have now been publicly threatened with legal action by Larva Labs, and that we have been advised that their legal options are slim and perhaps frivolous, we wish to inform that we will challenge vehemently any attempt to bully, intimidate or cause damage to V1 or V2 CryptoPunk holders.
The essence of the conflict
The community is organising a protest against OpenSea’s decision. Holders of the NFT collection are now calling it “CryptoPunks V1 313 WPV1,” alluding to the wrapping approach to resolve the issue.
Intellectual property infringement is not the only reason for the dispute. NFT value is governed by supply and demand. At the moment, the least you can get a CryptoPunk for is 68.95 ether because only 10,000 CryptoPunks are available.
If OpenSea lists the collection, the supply would double, lowering both uniqueness and value.